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Established on 12 June 1800 during the administration of President John Adams, the Portsmouth Naval Shipyard is the oldest continuously-operating shipyard in the United States Navy. It is situated on a cluster of conjoined islands called Seavey's Island in the Piscataqua River, whose swift tidal current prevents ice from blocking navigation to the Atlantic Ocean.[3]

Commodore Isaac Hull was the first naval officer to command the Portsmouth Naval Shipyard, taking charge in 1800 until 1802, and again in 1812 during the War of 1812. The yard's first production was the 74-gun ship of the lineWashington, supervised by local master shipbuilder William Badger and launched in 1814. Barracks were built in 1820, with Marine barracks added in 1827. A hospital was established in 1834. Architect Alexander Parris would be appointed chief engineer for the base. In 1838, the Franklin Shiphouse was completed -- 240 feet (73 m) long, 131 feet (40 m) wide and measuring 72 feet (22 m) from floor to center of its ridgepole. It carried 130 tons of slate on a gambrel roof. It was lengthened in 1854 to accommodate the Franklin (from which it took its name), the largest wooden warship built at the yard, and requiring a decade to finish. Considered one of the largest shiphouses in the country, the structure burned at 5:00 a.m. on 10 March 1936. Perhaps the most famous vessel ever overhauled at the yard was the Constitution, also called "Old Ironsides," in 1855.[5]

During World War I, the shipyard began constructing submarines, with the L-8 being the first ever built by a U. S. navy yard. Meanwhile, the base continued to overhaul and repair surface vessels. Consequently, the workforce grew to nearly 5,000 civilians. It would grow to almost 25,000 civilians in World War II when over 70 submarines were constructed at the yard, with a record of 4 launched in a single day. When the war ended, the shipyard became the Navy's center for submarine design and development. In 1953, the Albacore would revolutionize submarine design around the world with its teardrop hull and round cross-section. It is now a museum and tourist attraction in Portsmouth. Swordfish, the first nuclear-powered submarine built at the base, was launched in 1957. The last submarine built here was the Sand Lance, launched in 1969. Today the shipyard provides overhaul, refueling and modernization work.[5]

In 1994, the shipyard was placed on the EPA's National Priorities List (NPL) for environmental investigations/restorations under CERCLA (Superfund). The 2005 Base Realignment and Closure Commission placed the yard on a list for base closures, effective by 2008. Employees organized the Save Our Shipyard campaign to influence the committee to reverse its decision. On 24 August 2005, the base was taken off the list and continues operating under its motto, "From Sails to Atoms."[3]

The shipyard earned the Meritorious Unit Commendation in 2005. The MUC recognized the shipyard for meritorious service from September 11, 2001 to August 30, 2004. Portsmouth Naval Shipyard accomplishments achieved during that period included completion of six major submarine availabilities early, exceeding Net Operation Results financial goals, reducing injuries by more than 50 percent, and exceeding the Secretary of Defense’s Fiscal Year 2006 Stretch Goal for lost workday compensation rates two years early.

New Hampshire laid claim to the Portsmouth Naval Shipyard until the U.S. Supreme Court dismissed the case in 2001, asserting judicial estoppel.[8] Had it been found to belong to New Hampshire, base employees (and their spouses regardless of whether they themselves worked in Maine) from that state would no longer be required to pay Maine income tax. Despite the court's ruling, New Hampshire's 2006 Session House Joint Resolution 1 reaffirmed its sovereignty assertion over Seavey's Island[9] and the base.